Power tariffs for consumers in the national capital region is set to go up after the Delhi Electricity Regulatory Commission allowed electricity distributors (discoms) to levy a Power Purchase Cost Adjustment charge (PPAC).

For the consumers getting electricity from BSES Yamuna the increase will be 7 per cent, BSES Rajdhani customers will have to shell out 4.5 per cent extra on the electricity bills and Tata Power Delhi Distribution Ltd’s customers will find power 2.5 per cent dearer. The current levy of PPAC will last till February 14.

The hike is significantly lower than that being asked by the discoms. TPDDL had asked for a 7.42 per cent hike, BSES Rajdhani sought 7.26 per cent and BSES Yamuna 17.01 per cent.

PPAC is a surcharge levied to compensate the discoms for variation in fuel costs in the market. The component was introduced in 2012 to help discoms recover additional costs of procuring power on account of rising generation costs of the producers.

After hiking tariffs by up to 7.5 per cent for domestic customers, DERC had withdrawn the PPAC surcharge till October resulting in a marginal decrease in tariff for consumers whose monthly consumption was less than 400 units.

“The surcharge is applicable on the pro-rata consumption with effect from November 15,” said DERC in a notification. “PPAC is to be levied only on the basis of energy consumed from November 15 till February 14 or till further orders,” the notification added.

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